(MENAFN- The Peninsula) Sweden's left-wing government proposed Friday a hike in petrol taxes, citing the drop in oil prices and pressure put on it by its coalition partner, the Greens.
"The oil price has plunged by 50 percent, so it's become cheaper to fill up at the pump. That's one thing. The other is that we are in a government with the Green Party," Social Democratic Finance Minister Magdalena Andersson told reporters at a press conference.
"We need to finance our reforms krona for krona. And that means we need to increase revenues," she said.
The government proposed to increase the tax on petrol by 0.44 kronor (4.7 euro cents, $0.05) per litre and on diesel by 0.48 kronor.
The hike, which would take effect on January 1, would bring in 4.1 billion kronor (440 million euros, $479 million) to state coffers in 2016.
The proposal is part of the government's spring budget bill to be presented to parliament in April.
It is however uncertain whether the measure will be adopted, given that the government represents a minority in the assembly and depends on the opposition's support or abstention.
The head of the main opposition party, the conservative Moderates, Anna Kinberg Batra, has already expressed opposition to the plan.
"Government proposes heavy tax hikes for households, transport and business - how does that make Sweden stronger or create jobs?," she tweeted.
The previous centre-right government had in 2009 said it wanted Sweden's car fleet to be entirely fossil fuel-free by 2030.
Experts have meanwhile said that goal will be impossible to reach without very restrictive measures, such as prohibitively priced petrol, and the left-wing government in power since October has not adopted the previous government's date as its target.
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